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The Biden administration has introduced a proposal to eliminate medical debt from credit reports. This 'groundbreaking' and creative idea aims to ease financial strain for millions, opening the door to new credit opportunities and potentially reducing the burden of high-interest rates. And it eliminates transparency on credibility of loan takers which is important to inflate future credit bubbles.
According to the Consumer Financial Protection Bureau (CFPB), around 15 million Americans currently shoulder approximately $49 billion in medical debt. Health policy researchers at KFF highlight that two out of every five Americans are affected, with most facing debts in the thousands. These debts, often sent to collections, adversely impact credit scores, making it challenging for individuals to secure car and home loans.
By removing medical debt from credit reports, this initiative could foster a more accessible and equitable credit system. Critics' concerns about moral hazard appear exaggerated in light of the potential benefits for economic stability and individual financial recovery. The most important thing, besides the fact that politicians are buying votes by corrupting the credit market: more fuel will be injected into the fiat money pump and people will take on more debt to enjoy life! Bidenomics at work...
Normally I would say this is a terrible idea and would oppose it. However I am considering supporting this bad idea because Obama care has made medical care more expensive. Plus immigrants especially undocumented are getting medical treatment without paying for it.
The main arguments against banning medical debt from credit reports include:
  1. Increased Demands for Upfront Payments: Hospital leaders and debt collection industry representatives are concerned that if medical debt is removed from credit reports, hospitals might need to demand upfront payments from patients before providing care, which could lead to difficulties for those who cannot afford it[2][5].
  2. Potential Negative Consequences for Healthcare Providers: The Association of Credit and Collection Professionals has expressed concerns that patients might be incentivized to stop paying their medical bills, potentially leading to negative consequences for healthcare providers and lenders[5].
  3. Impact on Credit Reporting and Lending: Some argue that removing medical debt from credit reports could alter the way credit scores are calculated, potentially affecting lending decisions and the overall credit landscape[5].
Sources [1] New rule would ban medical debt from credit reports https://mississippitoday.org/2024/06/12/new-biden-administration-rule-would-ban-medical-debt-from-credit-reports/ [2] Proposed rule would remove medical debt from credit reports - NPR https://www.npr.org/sections/shots-health-news/2024/06/12/nx-s1-4998853/medical-debt-credit-scores-reports-rule [3] Biden administration moves to ban medical debt from credit reports https://www.wavy.com/news/politics/biden-administration-moves-to-ban-medical-debt-from-credit-reports/ [4] Biden administration proposes banning medical debt from credit ... https://www.cnn.com/2024/06/11/politics/medical-debt-credit-reports-biden-ban/index.html [5] Biden admin to ban medical debt from credit reports, loan decisions https://www.foxbusiness.com/politics/biden-admin-ban-medical-debt-from-credit-reports-loan-decisions-reports
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They tried this with student loans and couldnt get it passed. They think this will work lol Fool me once, shame on you, fool me twice, shame on me.
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Could this be described as fostering "sub-prime lending"? Has anyone tried that before?
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"How's his health?"
"I hear he's in sub-prime condition"
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I'm sure liar loans circa 2007 will soon be back in style too.
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Remove student loan debt as well
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I will never pay a hospital or doctor invoice
Who are these 15 million people with medical debt 💸?
49 billion divided by 15 million is about $3267 per debtor
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This is called account makeup 💄
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